Chapter Problems Analysis of Financial Statements mck to Assignment Attempts O 0 Keep the Highest 0/1 14. Problem 4.14 (Return on Equity) eBook Problem Walk-Through Pacific Packaging's ROE last year was only 5%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 40%, which will result in annual interest charges of $336,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $696,000 on sales of $8,000,000, as it expects to have a total assets turnover ratio of 1.3. Under these conditions, the tax rate will be 35%. If the changes are made, what will be the company's return on equity? Do not round intermediate calculations. Round your answer to two decimal places Grade it Now Save & Continue Continue without saving x